Does a prepaid wireless plan with unlimited voice minutes have to collect Colorado's prepaid wireless 911, 988, and TRS/telephone-disability-access charges?
Plain-English summary
Colorado adds small flat charges to prepaid wireless service to fund 911, the 988 suicide-and-crisis line, and telecommunications relay service (TRS) / telephone disability access. A seller of "prepaid wireless telecommunications service" must collect these charges from the customer on each retail transaction in the state. A wireless carrier planning monthly prepaid plans with unlimited voice minutes asked whether those plans trigger the charges. The Department said no.
The answer hinges on a precise statutory definition. "Prepaid wireless telecommunications service" means wireless access that lets the user call 911, is paid for in advance, and is sold in predetermined units or dollars "of which the number of units or dollars available to the caller declines with use in a known amount." That last clause is the catch. In an unlimited-minutes plan, the number of minutes available does not decrement or decline as the customer uses them — there is no running-down bucket of units. Because the units don't decline with use in a known amount, the plan does not fit the definition, and the prepaid wireless 911, 988, and TRS/telephone-disability-access charges do not apply.
Note on moving parts: the letter flags that the governing statutes were mid-transition in 2025–2026. A parallel definition in § 40-17.5-101(9.5) takes effect Aug. 6, 2025; the TRS charge in § 29-11-102.7 is replaced Jan. 1, 2026 by the prepaid telephone disability access charge in the repealed-and-reenacted § 40-17-104. The Department's reasoning — unlimited units don't "decline with use" — is the same across all of them.
What this means for you
Prepaid wireless carriers and resellers
If your prepaid plan meters minutes (a fixed bucket that runs down as the customer talks), it likely is "prepaid wireless telecommunications service" and you must collect the 911/988/TRS charges. If your plan is truly unlimited on voice minutes, the units don't decline in a known amount, and — on these facts — the Department says the charges don't attach to it. The structure of the plan, not its label, drives the result.
Accountants and telecom tax professionals
The operative words are "declines with use in a known amount" in § 29-11-101(21). Unlimited-usage plans fail that element. Watch the effective-date transitions the letter cites (Aug. 6, 2025 parallel definition; Jan. 1, 2026 swap of the TRS charge for the telephone disability access charge), and remember the Department administers only these charges — the PUC and local 911 bodies administer the other telecom surcharges, which this ruling does not address.
Common questions
Q: Do unlimited prepaid plans owe Colorado's 911 and 988 charges?
A: On the facts here, no. Unlimited voice minutes don't "decline with use in a known amount," so the plan isn't "prepaid wireless telecommunications service" and the charges don't apply.
Q: What makes a plan subject to the charges, then?
A: A plan paid in advance and sold in predetermined units or dollars that decrement as the customer uses the service — the available units decline with use in a known amount.
Q: Does this cover all the telecom surcharges?
A: No. It covers only the prepaid wireless 911, 988, and TRS / telephone-disability-access charges the Department administers. Other telecommunications surcharges are administered by the Public Utilities Commission and local 911 governing bodies.
Q: Can other carriers rely on this ruling?
A: No. A private letter ruling binds the Department only for the taxpayer and facts it was issued to and cannot be relied on by anyone else.
Citations and references
Statutes and rules:
- § 29-11-101(21), C.R.S. (definition of "prepaid wireless telecommunications service" — units decline with use in a known amount)
- § 29-11-102.5, C.R.S. (prepaid wireless 911 charge); § 40-17.5-104, C.R.S. (988 charge)
- § 29-11-102.7, C.R.S. (TRS charge, through Dec. 31, 2025); § 40-17-104, C.R.S. (telephone disability access charge, from Jan. 1, 2026)
- § 40-17.5-101(9.5), C.R.S. (parallel definition, effective Aug. 6, 2025)
- 1 CCR 201-1, Rule 24-35-103.5 (private letter ruling procedure)
Related Colorado telecommunications rulings: [[gil-07-017-taxability-of-call-center-services]], [[gil-07-004-taxability-of-dark-fiber]], [[gil-07-007-satellite-receiver-rental]].
Source
- Landing page: Colorado Letter Rulings
- Original PDF: PLR-25-003.pdf
Original ruling text
Office of Tax Policy
P.O. Box 17087
Denver, CO 80217-0087
[email protected]
PLR 25-003
June 24, 2025
XXXXXXXXX
XXXXXXXXX
XXXXXXXXX
XXXXXXXXX
Via Electronic Mail: XXXXXXXXX
Re: Application of Prepaid Wireless Charges
Dear XXXXXXXXX:
You submitted a request for a private letter ruling on behalf of XXXXXXXXX (“Company”), to the Colorado
Department of Revenue (“Department”) pursuant to 1 CCR 201-1, Rule 24-35-103.5. This letter is the
Department’s private letter ruling. This ruling is binding on the Department to the extent set forth in 1 CCR
201-1, Rule 24-35-103.5. It cannot be relied upon by any taxpayer other than the taxpayer to whom the ruling
is made.
Issue
Whether unlimited voice minutes in Company’s prepaid wireless service plans are “prepaid wireless
telecommunications service” as defined by section 29-11-101(21), C.R.S.,1 for which the prepaid wireless
911, 988, and telecommunications relay service (“TRS”) or telephone disability access charges (collectively,
“prepaid wireless charges”) must be collected pursuant to sections 29-11-102.5, 40-17.5-104, and 29-11102.7 or 40-17-104, C.R.S., respectively.2
Conclusion
The unlimited voice minutes in Company’s prepaid wireless service plans do not meet the definition of
“prepaid wireless telecommunications service” in section 29-11-101(21), C.R.S.,3 and are not subject to the
prepaid wireless charges.
Background4
Company is registered as a wireless carrier with the Colorado Public Utilities Commission. Company will
resell the wireless voice, text, and mobile data services of a national facilities-based carrier. Customers can
either bring their own phone and receive a SIM card or purchase a phone from Company. At this time,
1
Pursuant to Senate Bill 25-031, section 40-17.5-101(9.5), C.R.S, will also be effective August 6, 2025.
Pursuant to House Bill 25-1154, the prepaid wireless TRS charge in section 29-11-102.7, C.R.S., will be replaced on January 1, 2026,
with the prepaid telephone disability access charge in the repealed and reenacted section 40-17-104, C.R.S.
3
Section 40-17.5-101(9.5), C.R.S, will also be effective August 6, 2025.
4
Paragraph (4)(b)(ii) of 1 CCR 201-1, Rule 24-35-103.5 requires the request for a private letter ruling to include a statement of facts.
This section generally recites the statement of facts provided in the initial request or in any supplement or amendment thereto, which is
not an indication that the Department found such facts relevant to its analysis. Some relevant facts may be redacted or omitted to
ensure confidentiality as required by section 24-35-103.5(5), C.R.S. The terms used in this section to describe the factual background
are generally those of the requester.
2
PLR 25-003
June 24, 2025
Page 2
Company intends to offer residential customers monthly prepaid wireless service plans that will include
unlimited voice minutes, unlimited text messages, and different amounts of data.
Company will offer its services on a prepaid basis, meaning that service is paid for in advance for each
month that the customer wishes to receive service. Customers will have the option of providing Company
with a payment method to be used for advance payments. Any amounts paid will be for services to be
provided after receipt of payment, and not for services that were previously provided. Customers will have
the ability to cancel automatic payments at any time by accessing their account online or by calling customer
service. However, customers will receive service through the end of any service period for which they have
already paid in advance.
As noted above, every prepaid wireless service plan that Company will offer includes unlimited voice
minutes. As such, the number of units available, which in Company’s case is minutes, does not decrement
over the service period. The customer may use an unlimited number of voice minutes without being
concerned about using up a certain number of units, minutes, or dollar amount associated with the use of
minutes.
Discussion
Colorado imposes charges on prepaid wireless telecommunications service for the 911, 988, and TRS or
telephone disability access programs.5 A seller of prepaid wireless telecommunications service must collect
the prepaid wireless charges from the consumer on each retail transaction occurring in the state 6 and remit
the charges to the Department.7
For the purpose of the prepaid wireless charges, “retail transaction” means the purchase of prepaid wireless
telecommunications service from a seller for any purpose other than resale. 8 “Prepaid wireless
telecommunications service” means wireless telecommunications access that allows the user to make 911
calls, is paid for in advance, and is sold in predetermined units or dollars, of which the number of units or
dollars available to the caller declines with use in a known amount. 9
Under Company’s prepaid wireless service plans, the consumer will have access to an unlimited number of
voice minutes. The number of units or dollars available to the caller, in this case voice minutes, will not
decrement or decline with use in a known amount over the course of the service period. As a result, the
unlimited voice minutes in Company’s prepaid wireless service plans do not meet the definition of “prepaid
wireless telecommunications service” in section 29-11-101(21), C.R.S.10 Therefore, the unlimited voice
minutes in Company’s prepaid wireless service plans are not subject to the prepaid wireless charges.
Miscellaneous
This ruling is premised on the assumption that Company has completely and accurately disclosed all
material facts, that all representations are true and complete, and that Company has otherwise complied with
the requirements of section 24-35-103.5, C.R.S., and the rules promulgated pursuant thereto. The
Department reserves the right, among others, to independently evaluate Company’s facts, representations,
and assumptions. The ruling is null and void if any such fact, representation, or assumption is incorrect and
has a material bearing on the conclusions reached in this ruling. This ruling is binding on the Department,
5
Sections 29-11-102.5(2)(a); 27-64-103(4)(b); 29-11-102.7(2)(a), until December 31, 2025; and 26-21-103.5(1)(a)(III), C.R.S., beginning
January 1, 2026.
6
Sections 29-11-102.5(2)(d)(I)(A); 40-17.5-104(1)(a); 29-11-102.7(2)(b)(I), until December 31, 2025; and 40-17-104(1)(a), C.R.S.,
beginning January 1, 2026.
7
Sections 29-11-102.5(3)(a); 40-17.5-104(2)(a); 29-11-102.7(3)(a), until December 31, 2025; and 40-17-104(2)(a), C.R.S., beginning
January 1, 2026.
8
Sections 29-11-102.5(1)(e); 40-17.5-101(10); 29-11-102.7(1)(e), until December 31, 2025; 40-17-101(6), C.R.S., beginning January 1,
2026.
9
Sections 29-11-101(21) and, effective August 6, 2025, 40-17.5-101(9.5), C.R.S.
10
Section 40-17.5-101(9.5), C.R.S, will also be effective August 6, 2025.
PLR 25-003
June 24, 2025
Page 3
and is subject to modification or revocation, in accordance with 1 CCR 201-1, Rule 24-35-103.5.
The Department administers the charges for prepaid wireless telecommunications service. This letter does
not address the corresponding surcharges for other telecommunications service administered by the Public
Utilities Commission (PUC) and local 911 governing bodies.11 You may wish to consult with the PUC and
local 911 governing bodies about the applicability of the surcharges for other telecommunications service.
See the contact information available at PUC.Colorado.gov/Telecommunications.
Thank you for your request.
Sincerely,
Office of Tax Policy
Colorado Department of Revenue
This ruling cannot be relied upon by any other taxpayer other than the taxpayer to whom the ruling is
made.
11
Sections 29-11-102, 29-11-102.3, 29-11-103, 40-17.5-102, 40-17.5-103, 40-17-102, and 40-17-103, C.R.S. House Bill 25-1154
repealed and reenacted sections 40-17-102 and 40-17-103, C.R.S., effective May 22, 2025.